News, Tax Tips,

Tax Day 2014: Those Who Escaped

April 15th came and went, with some of us receiving refunds and others writing up a nice check to the federal government for what they owe. Ah, wouldn't life be nice if we didn't have to pay any tax at all? This sort of utopia unfortunately doesn't exist, with most governments needing taxes to fund public projects such as highways, social security, or even schools, among many other things. As such, paying taxes comes down to being a civic duty that every responsible citizen takes on with a certain degree of joy, or lack thereof. What if I told you there was a way to not pay taxes at all? Can you guess what that way is?

Transform Yourself Into a Corporation

Yes, you heard me right. If you don't feel like paying taxes this year, or any year for that matter, start filing out the paperwork to start your own business. Don't believe me that many hugely successful businesses don't pay a dime to Uncle Sam despite making millions, if not billions, in profit every year? Check out this list:   Let's all let this sink in for a second, because these numbers are a bit perplexing. In fact, a lot of the tax rates here are in the negatives, that can't be right can it? Well, it is my friends. Those numbers mean that not only did companies like McKesson, PG&E, and Facebook not pay any taxes in 2012 (the latest data available), but they received  $85 million, $74 million and $429 million in subsidies from the government. That means that the money the every day citizen paid in taxes in 2012 was used to give subsidies to companies that made huge amounts of profit. Granted, these companies do create jobs and do other useful things for the public good, but they also use government funded infrastructure for these achievements don't they? Here's another graph that dives a little deeper into this rather disturbing trend. This didn't only happen in 2012 and it also did not only affect 43 companies. Where can I get the paperwork to fill out and effectively transform myself? What do you think of this tax policy? Does it create jobs? Is it fair? Join the discussion here. If you liked this article, check out The Top Five Surprising Taxable Incomes.
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A cautious but optimistic observer of the market, Laurent enjoys finding investment opportunities that might disrupt their respective industries. He also has a passion for helping others learn about the inner workings of the markets in order to achieve their financial independence. As the Marketing Manager at SprinkleBit, Laurent gets to live out that passion everyday.

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